Buying a Home Remains 38% Less Expensive than Renting!

In Trulia’s latest Rent vs. Buy Report, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.

The updated numbers actually show that the range is from an average of 17% in Honolulu, all the way to 63% in Detroit, and 38% Nationwide! This is up from an average of only 5% cheaper in Honolulu in April.

The other interesting findings in the report include:

Rents have continued to increase nationally even as home price increases are starting to slow. Current low mortgage rates have kept homeownership from becoming more expensive than renting.

Some markets might tip in favor of renting next year if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.

Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.

Bottom Line

Buying a home makes sense. Rental costs have historically increased at a higher rate of inflation. Lock in a mortgage payment now before home prices and mortgage rates rise as experts expect they will.

“This was our first time buying a house and we were very glad that we had help from Kent. He gave us all the information we needed and good advice on securing the home we wanted when there were other interested buyers. I felt like things were favorable for us as well as the sellers.”

“I have used Kent to buy a home, sell a home, and to buy a home again. I get anxiety going through the whole process but Kent was always there to touch base and reassure me. Honestly, his professionalism and then his friendship are the reasons why I always turn to him when I'm ready to move. Also, his team does a great job of follow upand are quick to get the ball rolling. Overall the ending has always been a great experience for me.”

“We have purchased and sold four homes prior to our latest purchase of a home. We used the services of J. Kent Erickson for the sale of our last home and the purchase of the one we currently occupy. We were pleased with the services of our previous agents, but Kent stood out above them in all respects. We were truly amazed at the kind of effort and attention he was able to provide. We have recommended him to other family members and friends and would never turn to anyone else as long as he is available.”